The reign of Spain is over, as Turkey and Egypt see boost in bookings

Britain's love affair with the Costas is cooling as the pound slumps against the euro - with holiday bookings down dramatically for next summer.

Early figures suggest that the number of families choosing to head for Spain has fallen by 22 per cent.

Ever since the birth of the package holiday more than 30 years ago, Spain has been the number one destination for sunseeking Britons. But the credit crunch, the falling value of the pound and budget flights offering cheap alternatives have resulted in a fall in visitors.

Majorca is still the number one holiday destination, but Spain has seen early bookings drop by 22 per cent

While Majorca remains the single biggest-selling destination, the gap is closing against its rivals.

Turkey, which is not in the 'eurozone', has seen an 8 per cent rise in bookings, while Egypt has recorded a staggering 49 per cent increase, according to Co-Operative Travel.

Other popular destinations will be the U.S., Cyprus and Bulgaria, the independent agent said. By contrast, Tenerife and the Algarve have both disappeared from the top ten since last year.

Separate research from the travel industry trade body ABTA found that the number of Britons booked to visit the U.S. next year has risen by 13 per cent, with the election of Barack Obama as President cited as a factor.

Low fuel prices and a low cost of living are likely to outweigh the fact that the pound has fallen against the dollar, its survey showed.

All holidays are likely to cost more in 2009 because airlines and tour operators have slashed the number of seats available by up to one million in the wake of the credit crunch, leaving cheap, late deals in short supply.

Turkey and Egypt have become popular destinations as they offer Med-style beach holidays at resorts such as Bodrum and upmarket Sharm el Sheikh.

However, Turkish hoteliers and tour operators are cashing in on the boom with a 27 per cent hike in prices for next summer, the Co-op's analysis showed.

By contrast, Majorca prices are increasing by only 3 per cent to try to stop the exodus to noneuro resorts.